Indonesia clears path for geothermal energy as power needs rise

Indonesia has unveiled ambitious targets to triple geothermal power output this decade, introducing a series of land and regulatory reforms aimed at becoming the world’s largest producer of the fossil fuel alternative.

Sat atop the volcanic Pacific Ring of Fire, the world’s fourth-most populous nation is anxious to exploit geothermal energy as a clean and abundant power source as it races to attract investors and meet soaring power demand.

“With Indonesia increasingly having to import oil, coupled with a growing electricity demand, it is critical that it diversifies it base for electricity generation,” said Chris de Lavigne of consultancy Frost & Sullivan. “Indonesia has the potential to become the world’s largest producer of geothermal.”

As the world’s third biggest geothermal producer with a capacity of 1.4 gigawatt (GW), Indonesia lags behind the Philippines and the United States with capacities of 1.9 and 3.4 GW each. Indonesia aims to up its capacity by 4.9 GW by 2019.